Navigating a Changing Rate Environment

By Ron Shelby, Center for State and Local Finance The Federal Reserve implements monetary policy in the United States through various tools at its disposal. One of the most important for local and state governments is the Federal Open Market Committee’s setting of the Federal Funds rate. This is the rate at which member institutions lend money to each other overnight. Its importance trickles throughout the economy impacting how much depositors receive from money market, checking and...



Invest Wisely: A Primer on Local Government Investment Pools

Invest Wisely: A Primer on Local Government Investment Pools By Ron Shelby Local Government Investment Pools (LGIPs) first emerged in the early 1970s as an innovative way to give cities and counties access to a large portfolio of money market instruments at lower transaction costs. Connecticut started the trend. Georgia joined the crowd in 1981. And, now there are more than 100 LGIPs with assets of more than $250 billion in 44 states.  They can be an excellent cash management...